The state government has commenced the auctioning of sugar stock at factories which have defaulted in paying sugar cane growers, Sugar Minister R B Thimmapur has said.
"A total of 36 factories have not cleared the dues to farmers even after the June-30 deadline set by the government. Farmers will be paid out of the proceeds derived from the auction sale of sugar stock at such factories. They process began today (Tuesday)," the minister said. He was addressing a press meet here on Tuesday.
Sixty-seven sugar factories in the state had to pay fair and remunerative price (FRP) to the farmers totaling to Rs 11,948 crore for the year 2018-19. While 31 factories have cleared full dues the remaining are still in arrears of Rs 617 crore.
"The owners of remaining factories have sought more time to clear the dues on the ground that they are yet to receive export subsidy from the Union government. But, there is no question of heeding their request. The government will not compromise with the interest of farmers," the minister added.
